Poll Results: Harvest tax losses takes more care in 2022

An overwhelming majority of Knowledge Bureau poll respondents, 93%, believe investors should harvest tax losses in 2022 to recover taxes paid on capital gains declared in the past three years.  It’s an interesting question, however, because in some cases it might be the right thing to do; in others not.  Most professionals reflected this sentiment in their comments.

Assuming no accrued capital gains in 2022, realizing losses to recover taxes paid on capital gains in 2021, 2020 or 2019 is a way to generate cash flow.   However, once those losses are locked the opportunity to ride a market uptick is lost.  An option to soften that blow is to take the tax savings created with the loss carry back and add them to an RRSP or make a charitable donation. 

You may also wish to take a close look at whether there are any worthless securities; those that have been delisted for at least a year for example,  or those that have no value on any exchange, or are bankrupt or wound up.  It is possible to generate losses from those investments; speak to a qualified financial advisor and tax accountant about this opportunity.  

Thanks to everyone for participating. Please join us for our December poll, the question is:

Do you believe the new anti-flipping tax will reduce personal net worth in Canada in 2023?

For more detailed and technical information about this provision be sure to attend the Advanced T1 Tax Update. Agenda for this CE Summit is as follows:

• Personal Tax Update: What’s New In Personal Taxation?
• Focus on Employment Income, Deductions & Credits: Short Snappers!
• Focus on Pension Income: Tax Filing Tips and Traps
• Family Optimization Strategies
• Real Estate Transactions
• Focus on Income From Property  & Investments
• Focus on Business Owners – T2125 and Schedules

To register and get more information please visit CE Summit page.

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